In the course of entrepreneurial activity, taxpayers often encounter situations where an amount exceeding the tax liability is transferred to the budget, or a payment is made with incorrect details.
The tax legislation of the Republic of Kazakhstan provides for the possibility of offsetting or refunding overpaid and erroneously paid amounts of taxes, payments to the budget, penalties, and fines. The procedure is regulated by Articles 120–123 of the Tax Code of the Republic of Kazakhstan dated 18 July 2025, No. 214-VIII.
When Does an Overpayment Arise?
According to Article 120 of the Tax Code, an overpaid amount is recognized as the positive difference between the amount actually paid to the budget and the calculated (accrued) amount for the corresponding type of tax, payment to the budget, or penalties (taking into account previously made offsets and refunds) on the date of the offset and/or refund.
An overpayment may arise as a result of:
•repeated payment of the same tax;
•transfer of an amount exceeding the tax liability;
•reduction of previously calculated liabilities after submission of additional tax reporting;
•adjustment of previously accrued amounts.
How Is the Offset Carried Out?
In accordance with Article 122 of the Tax Code, the offset is performed by the state revenue authorities both without the taxpayer’s application and on the basis of a tax application.
Without an application, the overpaid amount is directed in the established sequence towards:
1.payment of calculated and accrued amounts for the same type of tax/payment whose payment deadline has arrived;
2.repayment of arrears (first for the same type of tax, then for other types);
3. repayment of penalties;
4. repayment of fines.
Based on a tax application, the overpayment can be directed:
•towards upcoming payments for the corresponding type of tax or payment (in the absence of tax debt of the taxpayer and/or its structural subdivision);
•towards repayment of the tax debt of a structural subdivision of a legal entity or the legal entity itself (in cases provided for by legislation).
When Is a Refund of Funds Possible?
The refund is carried out on the basis of a tax application by transferring funds to the taxpayer’s bank account specified in the application.
The refund is made in the absence of tax debt of the taxpayer and its structural subdivisions. If there is debt, an offset is first made against its repayment, and the remaining amount is subject to refund.
Offset and/or refund are carried out within 5 working days from the date of registration of the tax application.
Certain types of payments (state duty, a number of fees and charges) have restrictions on offset and refund (Article 121 of the Tax Code).
What to Do If the Tax Was Paid Erroneously?
An erroneously paid amount is recognized as an amount in the transfer of which an error was made (Article 123 of the Tax Code). Typical cases:
•IIN/BIN or budget classification code (BCC) was incorrectly indicated;
•the textual purpose of the payment does not correspond to the payment purpose code and/or BCC;
•error in the execution of the payment document by a banking organization;
•the payment was made by a person who is not the payer for this type of tax or payment.
Upon confirmation of the error, the state revenue authority performs an offset to the proper BCC and/or to the corresponding authority or carries out a refund to the taxpayer’s bank account.
Features of Refund for Non-Tax BCCs
For the refund of amounts paid under non-tax budget classification codes, the taxpayer must first contact the authorized state body administering this payment and obtain a conclusion confirming that the actions for which the payment was provided were not performed, the funds were not used, and are subject to refund. The conclusion is attached to the tax application.
How to Submit an Application?
The tax application is submitted:
•electronically through the Taxpayer’s Cabinet of the “ISNA” information system;
•through the eGov.kz portal;
•through the e-Salyq Azamat mobile application (for individuals);
•on paper through the State Corporation “Government for Citizens”.
In the application, it is necessary to correctly indicate the type of application (offset or refund), BCC, amount, and bank details (for refund). For non-tax BCCs, the conclusion of the authorized body must be attached.
Offset and refund are carried out within the statute of limitations: in the amount of sums paid during the current year and previous calendar years (starting from the year following the year of payment). After the expiration of the statute of limitations, the amounts are not subject to offset and refund.
Recommendations
The State Revenue Administration for the City of Aktau recommends that taxpayers regularly check the status of personal accounts, timely reconcile calculations with the budget, carefully check details when making payments, and not delay submitting an application when an overpayment or erroneous payment is identified.
Timely application and proper document preparation help avoid additional difficulties.
Zhadyra Sauirova,
Chief Specialist of the State Revenue Administration for the City of Aktau of the Department of State Revenues for the Mangystau Region
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